CALGARY, Alberta, Jan. 8 (UPI) -- Canadian energy company ARC Resources Ltd. said it plans to sell more than 15 million shares to raise capital to fund operations in the slumping oil market.
ARC in mid-2014 rolled out an $875 million capital program for this year that envisioned oil priced at around $80 per barrel, about 35 percent higher than the current market price.
In a statement Wednesday, the company said it plans to sell 15.5 million shares to raise around $350 million to fund developments in 2015.
"ARC plans to execute a $750 million capital program in 2015, reduced from the previously announced $875 million capital budget, due to the continued deterioration in commodity prices," it said.
The company last year set a production target of 125,000 barrels of oil equivalent per day, which would be about 10 percent higher than 2013 if realized. Drilling plans included 141 gross wells.
The low price of crude oil is forcing many energy companies to trim capital plans for 2015. Canadian Oil Sands Ltd., which owns about 38 percent of oil sands giant Syncrude Canada, said in December, when oil prices were about $18 per barrel higher, it was forced to cut back on spending for 2015.
ARC said it expects to meet its production expectations outlined last year despite the reduction in capital spending.
"The 2015 capital program remains strategically consistent with our long-term plan," the company said.
